Examining the effectiveness of Enterprise Resource Planning (ERP) system in National Medical Stores (NMS) in Uganda

Abstract

This study examined the effectiveness of the Enterprise Resource Planning (ERP) system at the National Medical Stores (NMS), focusing on system integration, utilization challenges, and alignment with the strategic goals of the Government of Uganda (GOU). The objectives were to assess the factors that determined effective ERP system integration with other systems, identify the challenges faced by NMS in utilizing the ERP system, and recommend strategies for enhancing system performance. A descriptive research design with a quantitative approach was employed. A sample of 125 employees from various departments at NMS was considered, with data collected through self-administered questionnaires, achieving a response rate of 56%. Data were analysed using descriptive statistics, including percentages and frequencies, to summarize the responses. The findings revealed that effective ERP system integration was influenced by strategic alignment with organizational goals, robust technological infrastructure, standardized data management practices, and the availability of skilled personnel. However, several challenges hindered ERP system effectiveness at NMS, including employee resistance due to inadequate training, data migration complications, excessive system customization, and cybersecurity threats. The study concluded that aligning ERP systems with national strategic objectives, providing continuous training, adopting cloud-based ERP solutions, and strengthening data governance and cybersecurity frameworks were critical for success. The study’s limitation was that the reliance on specific departments for sampling may have resulted in a sample that is not fully representative of all employees at NMS, potentially limiting the generalizability of the findings to the entire organization. The study recommended that NMS and similar institutions invest in technological infrastructure and regular training programs, minimize unnecessary customization, and implement structured change management initiatives. Additionally, the Government of Uganda was urged to ensure that ERP systems are aligned with national goals to enhance operational efficiency and informed decision-making. This study contributed valuable insights for improving ERP implementation within the public sector in Uganda and beyond.

Subject Key words: Enterprise Resource Planning; ERP system; National Medical Stores; Uganda